Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem: Your task for this module is to use the concept of present value to your chosen company. Assume your company is selling a bond that will pay you 1000 dollar in one year from today. Consider that if your company has financial problems in one year you might not get your full $1000 back. Given that a $ one year from now is always worth less than a dollar today, you most certainly would not pay a full 1000 dollar for this bond. Given the concepts of the time value of money,

[A] find out the payment for this bond today? Take into consideration your own personal risk preferences, inflation, interest rates, & the probability your company will not be able to pay you back in one year.

[B] Based on your answer to the above problem, what would be your discount rate for the bond? Apply the present value formulas from the background materials.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M919168

Have any Question? 


Related Questions in Basic Finance

Analyze print communication-find an example of print

Analyze print communication:- Find an example of print communication, for example, a flyer on campus, a newsletter, or a magazine ad. With a partner, discuss why the creator of the message may have chosen a print medium. ...

1 define willingness to pay and how it can be evaluated2

1. Define willingness to pay and how it can be evaluated. 2. What information is normally obtained from a credit report? 3. In analyzing corporate credit, what further investigation would an underwriter employ beyond a c ...

Quizquestion 1 according to the text a risk-averse investor

QUIZ Question 1. According to the text, a risk-averse investor _____. demands a premium for assuming risk will only participate in low-risk or risk-free investments is one of a small minority in the United States More th ...

The hudson corporation makes an investment of 24000 that

The Hudson Corporation makes an investment of $24,000 that provides the following cash flow: Year Cash Flow 1................ $ 13,000 2................ 13,000 3................ 4,000 a. What is the net present value at ...

1 what are the most important threats to validity that

1. What are the most important threats to validity that occur in quasi experimental research designs when the research is conducted over a period of time? What techniques can be used to minimize these potential interpret ...

How do analysts use ratios to analyze a firms financial

How do analysts use ratios to analyze a firm's financial leverage? Which ratios convey more important information to a credit analyst-those revolving around the levels of indebtedness or those measuring the ability to me ...

Should a slip-critical joint be analyzed as a friction-type

Should a slip-critical joint be analyzed as a friction-type or bearing-type joint? Describe some of the applications in which slip-critical joints are mandated? What is the difference between a pretension and a slip-crit ...

1 you are trying to value zombie games inc a company

1. You are trying to value Zombie Games Inc,, a company that manufactures games for the major game systems. You have been provided the following information: · The firm generated $ 30 million as operating profit (EBIT) i ...

1 why is motor carrier freight transportation the most

1. Why is motor carrier freight transportation the most preferred method of product shipment? 2. What is the economic justification for the recent rapid growth of premium package services? 3. Why is it important for a lo ...

What is the signaling theory of mergers what is the

What is the signaling theory of mergers? What is the relationship between signaling and the mode of payment used in acquisitions? Is there a relationship between the mode of payment used in acquisitions and the level of ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen